Ratnamani Agro Industries Ltd Management Discussions.

OVERVIEW:

Agriculture Industry is an important and integral part for economic development of India. Agriculture plays an essential role in the process of economic development of less developed countries like India. In India, agriculture was the main source of national income and occupation at the time of Independence. Agriculture and allied activities contributed nearly 50 percent to Indias national income. Around 72 percent of total working population was engaged in agriculture. These confirm that Indian economy was a backward and agricultural based economy at the time of Independence. After 61 year of Independence, the share of agriculture in total national income declined from 50 percent in 1950 to 18 percent in 2007- 08. But even today more than 60 percent of workforce is engaged in agriculture. Because of these reasons agriculture continues to be the dominant sector in Indian Economy.

INDUSTRY STRUCTURE AND DEVELOPMENT:

Growth in agriculture is twice as effective in reducing poverty as growth in other sectors. Though the economic growth in the other nations was below average, the Asian economies, particularly India and China, recorded robust growth. The year also faced headwinds, such as European sovereign debt crises, political upheaval in middle-east, spill-over from the Japanese natural disaster and the high oil & other commodities prices as well as monetary tightening in emerging market economies to contain inflationary pressures.

OPPORTUNITIES:

The fundamentals of the Agriculture sector continue to be robust and will drive growth in the years to come. The future of the seed industry in India is expected to be very good, with the demand for branded and quality seeds increasing. Seeds will be an important contributor to the targeted 4% growth in agriculture. Agriculture is gaining significance the world over with the rising needs from cultivation coupled with limited availability of land under cropping against the backdrop of the growing population. It is given that most

of this need will be met by increasing productivity and making efficient use of natural resources which will see more constraints into the future.

In India, the changing demographics and increasing aspirations is leading to a varied set of expectations in the farming sector. The Government too is seized of all these perspectives and is devoting increased attention to the farming needs.

SEGMENT WISE OR PRODUCTWISE PERFORMANCE:

Mahavir Green Crop Limited operates in only one segment in which it manufactures oil, oil-cakes, soap and other useful raw material for natural product.

OUTLOOK:

Mahavir Green Crop Limited Indias focus has been on expanding the presence of its stores, training employees, improving its product quality, collection, customer service and reducing the aged stock. Due to Companys strategy of aggressive retail expansion, up gradation of collection, Its entry into the safety natural product market has been equally successful.

Going forward, the Company remains committed to its shareholders and will continue to deliver great results with its strategy of retail and wholesale expansion, improvement in customer service, and by delivering to its customers great products at great prices, which will ensure the continued success of Ratnamani Agro.

RISKS, CONCERNS AND THREATS:

Agricultural activities are still greatly dependent upon the vagaries of the monsoon and upon soil conditions, availability of skilled labour, quality inputs and farm credit. Nonavailability of adequate irrigation facilities in most parts of the country restricts the acreage and possibility of a 2nd crop in the year. Macro economic factors like post recession effect, inadequate rainfall, subdued demand, political uncertainty and social upheavals and acts of god may also affect the business of your Company and also the industry at large. Government of India has been supportive of technology advancement and improvement in agriculture techniques in the country.

The business of the Company is dependent on various laws, regulations and policies announced from time to time. Any developments in these areas affecting the freedom of the Company to operate may adversely affect the business and growth of the Company.

Major fluctuations in total rainfall and its distribution affect the crop acreages, pest incidence and overall productivity and have a direct correlation with sales.

Organized retailers in India are also facing a threat from non-specialist retailers like apparel retailers diversifying into natural product and discount hypermarkets and retailers introducing and promoting their own brands at Competitive prices. These nonspecialist retailers are likely to grow their market shares by increasing the range of products offered, and shopping merchandizing space allocated to their own product. Your Company is prepared to meet these challenges by increasing the coverage open big stores, in best locations, shopping malls and developing aggressive product & pricing strategies to meet the expectation of the customers. The challenge of real estate management for any retailer in India today is very large as the continuous evolution of modern retail spaces, combined with steep increase in rentals, presents real challenges. Your Company has been managing this challenge with negotiating low rentals for all new stores and reducing rentals in existing stores.

CONTINGENT LIABILITY:

There are no claims against the Company which have to acknowledge as debts which mentions in schedule 25 of the schedules to the Statement of Accounts.

INTERNAL CONTROL SYSTEMS:

The Company has an adequate system of internal controls in place to ensure that all assets are safeguarded and protected and that all transactions are authorized, recorded and reported correctly.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Company has negative growth for some years but the Management is confident of turn around soon, barring unforeseen circumstances. The Company is deploying its internal accruals for aggressive expansion program.

CAUTIONARY STATEMENT:

Statements in the Managements discussion and analysis report describing the Companys estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that would make a difference to the Companys operations include demand-supply conditions, raw material prices, changes in Government regulations, tax regimes, economic developments within the country and outside the country and other factors such as litigation and labour negotiations. .

CONCLUSION:

The Directors place on record their sincere appreciation for the cooperation and support received from investors, our dear shareholders, customers, business associates, vendors as well as regulatory and governmental authorities.

The Directors appreciate the invaluable contribution of the management team in performing an outstanding job in taking the Company to greater heights and also thank the employees for the significant contribution made by them to the Companys progress.

We would like to specifically thank your Chairman for the untiring work in the reorganization of our company.

Place: Ahmedabad By and on behalf of
Date: 14th August, 2017 For Mahavir Green Crop Limited
PARAS VINODCHANDRA SHAH
Director
DIN: 00341800